Vol. 4 No. 2 (2024): African Journal of Artificial Intelligence and Sustainable Development
Articles

The Impact of AI-Driven Energy Efficiency Solutions on Sustainable U.S. Manufacturing

Dr. Emma Clarke
Lead AI Scientist, DeepMind, London, UK

Published 09-09-2024

Keywords

  • Energy Efficiency,
  • Manufacturing

How to Cite

[1]
Dr. Emma Clarke, “The Impact of AI-Driven Energy Efficiency Solutions on Sustainable U.S. Manufacturing”, African J. of Artificial Int. and Sust. Dev., vol. 4, no. 2, pp. 209–231, Sep. 2024, Accessed: Dec. 22, 2024. [Online]. Available: https://africansciencegroup.com/index.php/AJAISD/article/view/161

Abstract

In this study, we provide a comprehensive analysis of the effect of AI-driven energy efficiency solutions on the promotion of sustainable manufacturing, focusing on the U.S. economy. Our approach combines economic growth and pollution impact, allowing us to shed light on the role of AI applications. The associated rebound effect is also considered. The analyses show that AI-informed plant-level energy savings result in lower energy costs for firms. Lower costs combined with higher demand leads to increased output. The basic and more realistic models analyze the three parallel factors: increased output, the substitution effect whereby lower fuel prices increase fuel use (negative), and the energy savings effect which brings only a partial reversal.

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